Transcripts For BLOOMBERG Countdown 20160323

Investment bank overhaul as early as today. Manus you are welcome to countdown. Anna a warm welcome to the program. We are getting some breaking news, as we suggested in the headlines. Breaking news on credit squeeze. Manus five months into the restructuring. Of 1. 7 billion swiss francs. Cut 2000isse will additional jobs. In terms of cost cuts, 1. 7 billion swiss francs in 2016. 4. 3 billion swiss francs in 2018. You have a rising in terms of the cost savings. By 2018, a net cost savings of more than 3 billion. Operating cost space will be less than eight teen billion dollars. Originally, they said it would be 18. 519. Anna accelerating this restructuring in various areas. Manus they are exiting distressed credit. They are to exit the Global Markets efpt division. They will exit Global Markets longterm. Illiquid financing. Speculation that various institutions had been talking to Credit Suisse about their portfolios. This is trying to produce more assets which take up so much p this is about building a bank which is more capital light. The big headline is 2000 additional jobs will be lost in the Banking Sector at Credit Suisse. That is the announcement this morning. Anna breaking news to the Banking Sector. Lets talk about the Broader Market story. Events took place in brussels yesterday at the airport and the subway system. We had to focus on the market reaction. What is tragic to see and repeated time and time again is that the reaction in markets is incredibly shortlived. We have a good chart that shows how long it takes for equity markets to recover. During yesterdays session, we saw all of the losses that resulted from those attacks cleared by the end of the day. We closed positive in europe. Manus this is taking you back to 2011. You saw that horrific moment in new york. Take a step forward to the mumbai attacks. You see this real aggressive reaction on the travel stocks. Coming to paris, you can see the initial spike lower and then the reprieve. There is no doubt about it, these markets have pause. If we look at the risk radar, there are a couple of things driving emerging markets. Yen, we are back to unchanged. We saw money go into the yen. People are back to the fundamentals. What have you got on gold . Anna lowest level in a month. As itgoing into gold, often does in times of uncertainty, yesterday. We are weaker on oil, down by 1. 3 . Both of those contracts are over 40. Manus lets show you the u. S. Equity futures. This comes back to a dovish fed govern. U. S. Equity futures are lower. Asia is playing the catchup game. Dow jones down by. 8 also. Lets get back to belgium. The Belgian Security forces are hunting the perpetrators of yesterdays terror attacks. At least 31 people were killed and 230 were injured when bombs exploded at the airport and a subway station. Manus leaders have pledged to unite against the islamic state. They struggle to find a solution to the refugee crisis. Anna Ryan Chilcote is in brussels. What do we need to know about the Police Operation that is underway at this point . Ryan a reasonably Robust Police presence in the center of brussels. About 300 meters down the road. Rom here is the tube station as you can see, the road is still closed. It is still cordoned off. Over my right shoulder, one of the European Commission buildings, where the economy ministers and finance ministers meet occasionally viewed there are more police on the than i have ever seen in brussels in this part of the city. It is worth pointing out that there is often additional security. Maybe not this much, but additional security like this when the eu leaders gather. It is common to see that kind of thing. As you drive around the city, you get the impression that the increased sister security is in pockets. We do know that they have reentry just more check have reintroduced more checks. I came over from france and there were no border checks from there as of midday yesterday. Manhunts are underway. They are looking for one individual. The Police Tweeted out a picture of three of the alleged perpetrators of the bombing yesterday. They think two of them blew themselves up and one is still on the loose. Set the scene for us in terms of brussels today. The airport is closed or another 24 hours. What are people in the street saying about these attacks . Ryan most people are completely shocked. This is the largestever terrorist act in the history of belgium. There have been threats. Until you have Something Like this, people do not really absorb how devastating it can be. Thing as i was standing here late last night, one individual approached me and said he wanted to talk about the bombing. He was a sympathizer with the bombers. He said that if this continues, there will be more things like this as long as belgium participates in the coalition in syria. It gives you a sense of the hate that is simmering just been the surface in brussels. Maybe just yesterday, we got a little bit of a taste of it. Anna ryan clcote joining us from the streets of brussels. Lets get uptodate about the broader news stories. Good morning. The arizona has won republican president ial primary. He captured all of the 58 delegates. A concerted effort by his opponents to deny him the nomination. Hillary clinton was the victor in the Democratic Caucus but lost the utah caucuses the Bernie Sanders. President obama declared an end to the last remnant of the cold war in the americas as he concluded his trip in cuba. He appealed to the cuban people to realize their potential with a more open, dynamic economy. Obama and cuban president raul castro later attended a baseball game between the Tampa Bay Rays and the Cuban National team. S are seekingnie hedging Services Like never before. Forecastsl provider its hedging business will double this year. Drop of a further yuan linger even after it rebounded in recent weeks. Global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. You can find more stories at bloomberg top. Manus lets look at how the markets are reacting. At the top of the show, we said terror is a shortlived phenomenon. That wethrough stocks saw yesterday and how have they reverted . That was a great chart that you showed. What has been happening is a broader equity gauge as well. With each awful terror attack that has happened, the reaction in markets has been increasingly shortlived. Yesterday, the stoxx 600 had the biggest drop in a week and then it recouped all of its losses by the close. It ended ever so slightly in the negative, down. 1 . As you can see, those losses were recouped. The rapid rebound might be part of the function of stocks recovering quickly after attacks. It also may be a function of how already inence is european stocks. 2016 is the most volatile year for european equities since 2008 because investors are fretting oilt corporate profits and and centralbank policy. Was fleeting. You can see gold and the yen against the dollar. Gold and the yen moving in tandem as money moved in and out. Said ity, David Cameron is not appropriate to talk about brexit when we are talking about these attacks in brussels. Ofdid have a number companies pointing out the increased brexit risk. Just want to show you asian stocks. They are playing catchup, but we are seeing them decline. Anna jane foley joins us on set this morning. Very good to see you, as always. Lets talk a little bit about the big picture questions surrounding the euro. Lots of people talking about the political pressure that some of europes leaders are under. How did we see that euro trade and what does that tell us about the way people are perceiving the euro . And also how the euro has been positioned. What we saw yesterday, not performing very well at all. You can explain that by saying eure are concerns about the that have been going on for a while and perhaps this brings it to a head. I think the positioning explains why it has not performed well. The euro started to perform well when we had riskoff events. That confused the market at the time. If we go back to the start of last year, the market was very short the euro. It seems we have had a big correction in positions since then. Recovered tot has more normal levels. I think the euro is more vulnerable on bad news. Anna not the safe haven that it was a year ago. Ite it was difficult to say was a safe haven even a year ago. It was exhibiting safe haven behaviors. The yen. Ts talk about we saw a jump by. 3 yesterday. Reminder that we had that repression in Foreign Exchange volatility. Then what you have got is this pop. One month of volatility, ratcheting higher. Levels that we have not seen for quite some time. The Central Banks were repressing volatility. Jane that is right. At the start of the year, we saw volatility going higher. It was almost as if markets had given up on this defection because it meant more Monetary Policy easing. Yet Central Banks managed to win back over the last month. Volatility is down. Even though, in the last few weeks, where we saw risk return to the stock markets and currencies pushing higher again, the yen held quite firm. That is interesting. It could be because we saw some data from the ministry of finance for japanese bonds, overseas. Because of the huge Quantitative Easing Program in japan or it could be because there are these undercurrents of uncertainty related to slow growth. Anna back on the euro and geopolitical events, the attacks that unfolded in brussels yesterday, does this put sufficient pressure on some of europes leaders, some of the bigname leaders like Angela Merkel and others, those who have supported the big european projects and opened the doors of migrants and refugees from other parts of the world . Does this put pressure on those to bring out questions about the european project . Jane i think the questions are coming to a head. If we look at merkels properly ready popularity, she is under pressure. If we look at some of the politics in spain and france, what we have seen is a movement to the far right. We have seen a movement to the far left. People are tired of austerity. A movement to the far right because people are worried about immigration and the events that we have seen in paris. Politics in europe is changing. Even in the u. S. , we can see the movement to the far right and far left as well. Anna jane foley stays with us. Fors lets get you set up the day ahead. President obama makes a state visit to argentina. This afternoon, the st. Louis fed president visits the bloomberg headquarters in new york. Later manus new home sales data from the u. S. They were expected to decline in february as cheaper borrowing costs and labor markets helped interest. Anna clinton and trump take arizona. Sanders succeeds in utah. We take a closer look next. Anna welcome back. It is 19 minutes past 6 00 in london. 19 minutes past 2 00 if you are watching in hong kong in the afternoon. The hang seng markets down by. 6 as asian equities react to the events in brussels yesterday. Lets get the Bloomberg Business flash. Credit suisse is accelerating its restructuring. The bank is targeting cost savings of 1. 7 billion swiss francs in 2016. That will include cutting an additional 2000 jobs. Credit squeeze is one of a number of banks struggling to boost profits as trading slumps. Nike shares have fallen after an analyst annual forecast missed analyst estimates, raising concerns. The company says sales will increase by a high singledigit percentage during the next fiscal year. Analysts had projected a rate of about 10 for that period. Earnings will rise in the low teens compared to an estimated growth of 15 . Sachs banker who got a colleague to steal documents from the Federal Reserve of new york has been sentenced. The judge said he had been punished enough by having his reputation trashed on the internet. That is your number business flash Bloomberg Business flash. Manus lets get an update on these markets with yvonne man. Asia has pretty much wrapped up shop. Give us the latest in terms of the catchup game in asia. Yvonne good morning. We are close to the session lows all afternoon. We spent much of the day shrugging off what happened in brussels. Riskoff. Le bit more investors not necessarily rushing for the exits, either. The nikkei ended the day down. 3 . The aussie stocks pretty much held a on to those law held onto those losses of. 5 . We are expecting u. S. Data coming out later today, so that was weighing on sentiment. Fluctuate him. We were down a couple of fractions of a percent, what now we are up. 1 . We are seeing oil and gas, industrials, Raw Materials leading declines in the regional benchmark. It is on oil today, too, as wti is snappy out of those snapping out of those gains. The Oil Price Falling 1. 1 during the session. As far as oil currencies, we are seeing the Malaysian Ringgit continuing the rally. This resurgence in crude really boosting asias only net oil exporter. Back to you guys. Anna thank you very much. Lets talk u. S. Politics. Hillary clinton and donald trump won their primaries in arizona. Clinton criticized trump for questioning american membership of nato. Donald trump saying we need to get out of nato, the most important Defense Alliance there has ever been. It is headquartered in brussels. We need to modernize it and make it ready to deal with the threats of today, including terrorism. Manus jane foley is the senior nkrrency strategist at rababa and is still with us. Focusing in on the dollar, Political Risk is not in the price yet. Jane it is not in the price yet. That said, it is interesting to look at the position of the u. S. Dollar. We see that dollar longs have been pared back significantly. If you look at the data manus down 80 from last year. Jane they are down to levels they were last at in june of 2014. That is a very interesting period. That is when the ecb first went to negative Interest Rates. That was really important in this whole currency war. The ecb going negative really pushed a lot of speculation into the dollar. That has been unwinding for about a year as the market push back on this perception that the fed could be hiking. That is likely to go down, to be honest. It is very datadependent. We have the Political Risk. With long positions in the dollar, this pares down. Fx storyis is our top this morning. It is actually a bear trap. When you see this kind of demolition going on in the positioning back in april of last year, you see this spike. Anna the betts on the strong dollar in blue. Reprieved you see this. There are not a lot of shorts left in this market. Jane exactly. Even though the fed was dovish last week, they are in a hiking cycle. Everybody else has become more dovish. And then we have some hawkish comments coming from a dove of the fed. Charles evans saying that increases would not be unreasonable. Jane and yesterday, or the day before, we had two or three coming out with hawkish comments. It does not seem as if the fed want to put down the prospect that june is still on the table. The comments we had this week suggest april is still on the table. That is really quite soon. We have seen an uptick in inflation. Personal Consumption Expenditure is the chosen metric. My question to you is this. If that is rising, will yellen lean towards floating above that 2 level . Jane she has indicated between the lines she is very concerned about the jobs in america. There is still a consensus that there is more slack in the labor market. Think, might be more willing to see inflation go up rather than risk hiking too soon. Anna a quick update on the political story in the United States. Utahruz has won the president ial primary. Bit of an update on the other runners. Manus jane is going to stay with us. Up next, we are going to talk about more from the belgian capital with the latest on the terror attacks. Manus it is 6 30 here in london. It is 7 30 in brussels. Dollarsterling trading down at 1. 4189. The pound against the dollar has of its value 1. 25 in the past 23 hours. Lets get you up to speed with your bloomberg first word news. Is accelerating its restructuring. The bank announced it is targeting cost savings of 1. 7 billion swiss francs in 2016. That will include cutting an additional 2000 jobs. Credit suisse is one of a number of banks struggling as Global Trading slumps. The arizona has won republican president ial primary. He captured all 58 delegates, blunting the concerted effort by his opponents to deny him the nomination. Hillary clinton was the victor in the democratic contest. But she lost the utah and idaho caucuses to Bernie Sanders. Canadian Prime Minister justin tried to stimulate his countrys struggling economy. The cumulative deficit far exceeds what he promised in last years Election Campaign and stems from the worsening outlook that they inherited. It also marks a shift for canada, which was home to an antideficit orthodoxy for three years. President obama declared an end to the last remnant of the cold war in the americas as he concluded his groundbreaking trip to cuba. He appealed to the cuban people to realize their potential with a more open, dynamic economy. Obama and cuban president raul castro attended a baseball game between the Tampa Bay Rays and the Cuban National team. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. You can find more stories on bloomberg top. Anna one of the big breaking news stories in the Business World is credit squeeze. Credit squeeze Credit Suisse. Bloomberg reporting that it might happen as soon as today and it now has. Credit suisse targeting more cost savings, increasing trading cuts five months after it announced an overhaul. The riskweighted assets in Global Markets would drop to about 60 billion, down from a previous target of about 83 billion in credit squeeze Credit Suisse plans an additional 2000 job cuts. The ceo already presented a strategy shift. He has been struggling to restore investor confidence. I want to show you confidence context with this chart. Although he has stated his strategy on growth and managing money for the rich, he is scaling back the investment inc. In business. Shares have still fallen 34 this year. Back to october, they were tracking the bloomberg and europe 500 bank and Financial Services index. You can see the disparity. This chart has normalized. Credit suisse is lagging behind this year. To morelso been trying than double pretax profit by 2018. He wants to achieve this by shrinking the volatile trading business and building up Wealth Management in asia. Of course, the bank posted its biggest quarterly loss in seven years for the final three months of 2015. We were told last month that the ceo would accelerate job cuts with 4000 job cuts by the end of this year. He cited a challenging environment and now we have a the additional 2000 job cuts and more cost savings. Manus thank you very much. That is the latest breaking news on credit squeeze. Ets Credit Suisse lets return our attention to belgium. They are now hunting the perpetrators of the attacks that killed 31 people and injured 230 others. What do we know about the Police Operation at this stage . there is a reasonably Robust Police presence where i am. That is perhaps to be expected. Just over my left shoulder, you have the subway station, which is still closed. That is where the Second Attack took place. That is where the majority of people were killed in the early hours of yesterday morning. Lots of soldiers Walking Around with weapons. They did not want to be filmed, so we have not done that. Just to give you more context of the area, just over my right shoulder, you have one of the European Commission buildings. It happens to be where the economy and finance ministers regularly meet. Generally speaking, i would not describe this as a city in locked down. Parts of the subway station are closed, like the station here. But parts are open. The airport is still closed. If you get outside of this pocket of central brussels, people are already going about their daily business with the notable exception that many people are morning today mourning because they have never seen anything like this before. Anna you started to paint the picture of what things are like on the ground. Give us some detail on what is happening in brussels now. What have people in the street been saying about these attacks . The vast majority of people here in belgium are completely shocked. Largestever terrorist attack in the countrys history. We are now in three days of mourning. There is a place where people can leave flowers for the dead. People are just coming to terms with this. If you think about this, belgians have faced many threats, but never any big attacks. Having said that, yesterday, i was approached of one man who i thought was going to tell me how orrific it was but when on to tell me how there would be more of this as long as belgium is part of the operating coalition in syria. He said that these were the fruits of the policy. That is shocking considering we are just meters from where 31 people lost their lives yesterday. It speaks to the hostility and anger just below the surface here. Brussels is like a city of two peoples that interact on a daily basis but do not really share their worldview. Maybe what we are getting is a taste of at of that. A rather nasty taste of that yesterday. It is something that people are focusing on a lot. How could this be happening in belgium, in this city that everyone thinks of as such a Peaceful Place . Anna and the seat of european power. Thank you very much. Charttake a look at our of the hour. Guy johnson joins us now and jane foley is still with us. This is related to what we have been hearing from ryan. We get the kneejerk reaction and start to analyze the situation. This to partly explain why we saw such a benign reaction yesterday. One of the reasons for that is this ratio has been going up sharply over the last few weeks. In many ways, the market was prepositioned for an expectation that we were going to see negative news. As a result, when we get negative news like this, at least the market is set up for it. Anna more options to sell than to buy going into this. Guy exactly. You did see it spike a little bit, but then it came down, reflecting this muscle memory that the market has. The point i am trying to make is a simple one. The market was set up for the negative news. We got the negative news. It was not the news the market was expecting, but it was already prepositioned. Manus such dovish action by major Central Banks in the markets have run up so far, so fast. The velocity of the recovery in equities was so monumental that this was the opportunity perhaps to jump in. Markets are very much fundamentally different in terms of currencies and risk. Jane we have seen the run up in stocks, but not the good news with respect to stability. What created the selloff in stocks at the start of the year . Markets know that we have seen risky assets push higher over the last couple of years. It is not going to get those returns. Global growth is still pretty weak. There is the potential for a correction. Mindset created this positioning. We have seen the correction in stocks. This increasing in hedging happened at the same time that people were feeling more bullish. It is protecting your position. You can go along, but you want to protect that position. We had a rally, but we do not entirely trust it. We have also got the japanese volatility. Impression of volatility is firmly back on the agenda. A lot of people maintained that, when we had the first rate hike, japanese volatility was at the lowest level since the start of the year. It was lifted in terms of volatility by the fed, but it took time to work things out. January, we saw the spike in volatility. There is a piece written by goldman guy japan is interesting. Has not allowed japanese stocks to benefit from the rally we have seen. The euro is a little bit in the middle. The yen story has been interesting surrounding that. Talked about not using currencies for competitive advantage. Carney said that negative Interest Rates prevent we do knowtor that Central Banks have been playing the game. Manus thank you, jane foley. Guy johnson will be back with on the move at 7 30. Resigned, but not pushed. So says john mumford. We talk about the brexit question coming up next. Anna welcome back. This is countdown. See as suggesting we will slightly weaker open at the start of the u. S. Trading day. Lets get the Bloomberg Business flash for you. Is accelerating its restructuring. The bank has announced it is targeting cost savings of 1. 7 billion swiss francs in 2016. That will include cutting an additional 2000 jobs. Credit suisse is one of a number of banks struggling to boost profits as Global Trading slumps. Nike shares have fallen in afterhours trading after its annual or cast missed analyst estimates, raising concerns about growth. Says sales will increase by a high singledigit percentage during the next fiscal year. Analysts had projected a rate of about 10 . Earnings will rise in the low teens. Nike says, compared to projected growth of 15 . Sachs banker who got colleagues to steal documents from the Federal Reserve bank of new york has been sentenced to prison. Prosecutors ought he should get as long as a year in prison. The judge said he had been punished enough by having his reputation trash on the internet. Trashed on the internet. Manus David Cameron has lambasted the u. K. Independence party for seeking to use the terror attacks in brussels to make a case for britain leaving the European Union. Anna the pound posted the biggest decline among major currencies. Manus bank of england governor will have the first formal meeting of the year. That is later today. It is the last before the eu referendum. Anna it comes to weeks before after carney declared the exit vote as the biggest risk to financial security. Resigned from his role after being suspended for his views on a potential brexit. Manus he becomes a member of the campaign committee. He joins us now to discuss britain and the European Union. Jane foley is still with us. John, great to have you with us this morning. You have taken up this official mantle. Ental is there something you did not have a chance to say so far . Be . Would the message leave, and ito include myself in that, it is the small entrepreneurs who invest their own money and take their own risks to grow businesses that are impeded by the European Union. It is the workers of this country who have suffered greatly from European Union rules and the constraints. It is those people, the vast majority of the population, who gain the most leaving the European Union. View ise alternative that the financial instability that would result mark carney talking about the brexit vote being the biggest risk to the u. K. Financial stability. That does not play well for entrepreneurs, does it . A lot of turmoil could result. John the thing to interpret from his comments is that he has a system to provide liquidity from the banks and even out turmoil for the markets. When he made this statement, he was saying, dont worry, we have got it under control. The truth is, there will be fluctuations because the markets overreact. But this is a longterm issue for the u. K. We will be much more prosperous and secure and have a Better Future if we leave the European Union. Turbulence,rtterm if weterm uncertainty, are prepared to weather that, we will have a Better Future. Manus point taken. We talk about the longerterm. We have a variety of interests who come in here and say the u. K. As a whole employs about 3000 people in Financial Services. 15 of those jobs could be at risk. That,is a very real risk ofa protracted period renegotiation, Companies Might not continue to invest here but invest elsewhere in europe. A recent report has said the Financial Services sector will not invest. Secondly, the companies that are saying it will be a big problem are the same who said it would be have been a disaster if we did not join the eurozone. Nothing happened. The u. K. Economy continued to grow. Manus you cannot deny that many Asset Managers in the United Kingdom are able to go into europe. John of course. But the u. K. Needs to be and will be the best place to do business in the world. If we go through that short turbulence, the government will have to make sure that our economy is the best place to do business. They will reduce business taxes and keep Interest Rates low. The currency will drop for a short time, which will make us more competitive in europe. We will have a rebasing of production and consumption to the u. K. Market. For foodnd quotas products will be removed, which will help us to reward Food Products at lower prices. A whole interesting range of things will happen and i can guarantee they will happen. In the long term, we will have a better economy and better place to do business and we will be able to make our own trade deals. Anna we will come back to that conversation. You are making quite a lot of assumptions. Jane, you are listening to this. You are in the markets on a daily basis. And the picture of what kind of volatility you would expect to see and how longlived it would be. Generally doies not like political uncertainty. We saw it again yesterday. We had it in february. Sterling is very vulnerable on this. From the market point of view, the markets like certainty. Terling would perform better i do not think you can deny that. It is the uncertainty. There seem to be a lot of assumptions. Trade and investment are very concerning to most investors in the market. Need inward investment. We need other peoples savings. Savings from abroad. There is a concern that the state campaigns have said and the u. K. Is a top country for inward investment. A lot of the countries think they have access to the european market. There is some uncertainty about that. The tariffs may go, but we cannot guarantee that. Agreementsn tariff which are going to be ratified next year took about eight years to negotiate. Investors have all of these uncertainties. Anna you would vote for that, john . For medium tovote longterm security, a better environment to do business. Inward investment comes here because people believe this is a secure place to put their money and is a market that has Great Potential for business growth. That is going to improve when we leave the European Union. Not all the inward investment is necessarily good. Awaye giving , nottleading Companies Good inward investment. ,e need good inward investment things that are multipliers to the economy. I spoke to a lot of investors of countries that are outside the European Union with whom we do business. They said they would do a trade deal with the u. K. In the blink of an eye. What a massive distraction that would be, for the bodies that run the u. K. To do all those deals. John cornyn the government can easily do this sort of thing. We will make a deal that is the u. K. Deal. Those tariffs will disappear. If the worstcase scenario happens and europe erects tariffs against the u. K. , we will still do very well. The maximum tariff is 5 or lower. The currency value is 7 in the space of a week. Anna in the interest of Holding Together the european project, they might decide to make a better case of britain and deliberately be tough in those negotiations. We do not have, a trade deal with the United States of america. We have a trade surplus in services for the u. S. , which is 4. 5 times bigger than the trade surplus we have with European Union. We have a massive trade deficit in europe. Manus a large percent of exports in this country do go to europe. I caught up with martin schultz. Anyonenever interviewed who had so much determination when i asked what would happen in terms of this trade agreement. Your campaign is saying it would be done and expedited. I have never heard anyone as vitriolic in my life saying no. The message that you guys do not want in terms of when we are making our decisions. Europe is not going to roll out a red carpet for you. John what i am saying is very simple. If europe does not roll out a red carpet, we will do very well. The worstcase scenario for the u. K. Is actually very good. We are germanys number one export market. Are they going to want to stop selling us motorcars, refrigerators, and vacuum cleaners . I dont think so. It is not government who makes trade. It is people and businesses. Governments only get in the way. Manus are you going to advocate for a Free Trade Agreement . John it is a fallback position. The truth of the matter is that europe will negotiate trade deals because it is economically rational to do so. Anna enjoying your new job . John yes, absolutely. A member of the vote the committee. Thank you for joining us. And jane foley, thank you for joining us. Manus coming up, the u. K. Treasury Committee Questions Boris Johnson. Security forces hunt the perpetrators of the brussels terrorist attack. 31 people dead and more than 230 injured. On easy markets, ages stocks slump following u. S. Weakness. Boris johnson, talks brexit. Etc. The cost savings plan. They will lose an additional amount of jobs. Hillary clinton and donald trump both take arizona the democratic and republican primaries, but there are victories for ted cruz, and Bernie Sanders elsewhere. Manus you are welcome to countdown. Youret is 8 00 if watching in brussels. The development in brussels so very much front and center for us here in europe. With that in mind, European Equity markets made up for all of those losses during the session. What does today have in store . At 81 come yesterday that was that a vicious reaction in the travel, were seeing that. The destruction of valley very quickly, limited in the emerging market stocks. Have learnedts from previous episodes that macroeconomic effects tend to be limited, and they fade, that was in his facebook video. I dont want to say theyre becoming immune, but more efficient in terms of looking at the risk and trying to move on. Anna the asian market session is actually weaker. And bring you up to speed on how various asset classes. We saw that slide into gold and other safe havens at the time of the attack. That h been unwound. Now. Is where we are right fourththat is for the day out of five. Also, evans, one of the more dovish fed governor saying two hikes ar still on the table. On bloomberg, we are waiting for the data in terms of the official u. S. Data. Oil dropping across the market. Three minutes past 7, 3 minutes past eight if youre in belgium. At least 31 people were killed and more than 230 injured when bombs exploded at the airport, and the subway station. Manus the attacks put more bordere on the eus controls, and passport free zones as they struggle to find a solution. Ryan, good morning to you. What is the latest on the Police Operation . The Police Operation is ongoing. We know theyre looking for one man. Picture of three individuals. They believe two of them it shows pushing baggage carts, they believe are suicide bombers who are no longer with us. Third, to give the impression theyre looking for him. They specifically asked if anyone recognizes this man. In my mind, that doesnt preclude the chance that the individual is dead and they just want to identify him. Generally, most of the police saying theyre still looking for people. There are manhunts underway. Where i am, the seat of government at the European Commission, its buildings surround me. Down the street is where the malbec subway station is. That is where the second of those attacks there is more robot police presence. I would say it is crazy. It is maybe 20 more than when we have eu leaders gather. I wouldnt say it is crazy. It is maybe 20 more than when we have eu leaders gather. Ofhink the biggest effect the Police Operation and the clampdown in pockets of brussels, i dont want to call it a lockdown. I dont really think that it is. There are fewer people on the street this morning in brussels than you would expect at a commuting hour like this. Sense ofu talk about a silence, or thus people on the street. Give us a sense of the response. The variety of voices youve spoken to with regard to these attacks. Ryan we are in three days of mourning. The vast majority of belgians are doing just that. Close to 200 people wounded, the biggest ever terrorist act in belgian history. It is a lot of shock from the people i speak with. Im not sure anybody saw this coming. Having said that, i was approached by one young man last night. I thought that he wanted to tell me about the explosion, and how horrific it was. In fact, he was a sympathizer. He said there will be more of these attacks of belgian keeps participating in the coalition in syria. He said these are the fruits of belgiums participation. I think, unfortunately, as horrific as that sounds, it gives you a sense of the anger boiling underneath the surface here. Twosels is almost a land of peoples. There are these deprived neighborhoods, where there are a lot of unemployed people. Really short on opportunity, and if a different worldview. Not all of them, of course. While, andnce and a who we saw yesterday was a manifestation of that view. Anna thank you very much. Joining us there from the streets of brussels. Some breaking news from southern france. Manus officials have said that been evacuated, Police Checks are ongoing. All flights are currently delayed. As we get a little bit more detail, in the immediate yesterday. F brussels every airport in the world is on a heightened state of alert. Anna we saw many of them announcing that just yesterday. Heightened levels of security. He pounded posted its biggest decline among major currencies, among speculations at the increaseattacks could support for brexit. Manus now, some argument of Economic Cost of the uks eu membership. That will be later today. Anna joining us now come our London Bureau chief. Jonathan, great to see you. Lets start with you. The Prime Minister, David Cameron, very critical of other brexitiers. Britainsion that faces in june, the reaction of the markets was clear to see. There was a link being drawn by some investors. Jonathan absolutely. Traders think that events like that make the possibility of brexit higher than what they were. David cameron is talked in the past of the eu being safer, and stronger. Though put in the thought the minds of people if they want to make up their mind. Unfortunately, these events could come at a worse time in terms of momentum. Linkcould join this between immigration and a lack of control that would appear to be in brussels in terms of intelligence. That sets the european perception in terms of the press here. Absolutely. , they wereonth talking of making a link and the massive migration and how that undermines security of europe. And if the u. K. Is within that kind of collective group. It is also open to such attacks. The campaign against brexit would argue we are actually stronger together. We could share intelligence, share in various police structures. That it makes us stronger. Others would say not. ,nna from a market perspective what is the reaction in currency markets . Brussels,we saw in does it increase the risk of brexit from an investors perspective . Thethan that was what market was saying yesterday. It seems to be this view that if we have brexit, sterling will fall immediately. Of we have a period turmoil where we we negotiate and it could fall further. Stay income only go back to 154, where we were last summer. Anytime there is any news putting one way or the other, that will affect sterling. We had j. P. Morgan asset management, and it was interesting that he didnt think sterling would regain its lost ground even if we voted to stay in it. In terms of a global perspective, we are such a globalbased equity index in that thathe ftse 100, has got merit as well in terms of the broader perspective. In terms of u. K. Equity market, it doesnt have brexit doesnt seem to have much impact. Give a weaker sterling helping companies. Manus and lets have a double brexit. Could benefitit the market. Whether it benefits the market in dollar terms is a different matter. Away from this, there are plenty of questions being asked about the stability of europe. Is that the bigger question that overrides this . Is the sharing borders, a the political pressure as a result of opening up borders . Events like yesterday suggest that the Brexit Debate is a bit of a sideshow, or british irritation. Migration is obviously an issue. The border is front and center. These are things people say we want to be discussing this. This is another issue that David Cameron would have to deal with on the other side whether to kick back against the brits. Anna jonathan, thank you very much. Bureau chief, simon kennedy, thank you. Manus coming up, we of the u. K. Question for the london mayor who is clearly a probrexit campaigner. On britains eu membership, we are bringing back live right here on bloomberg tv. Anna Security Forces increase their presence across europe. Brussels, which remained on high alert. Anna welcome back. Lets get the business flash. They are accelerating the restructuring and targeting cost of 1. 7 billion swiss francs. That will include cutting an additional 2000 jobs. It is one of a number of bank struggling to boost profit is Global Trading slums. Nike shares have fallen in afterhours trading after its analystsrecast missed estimates. The company says sales will increase, but a high singledigit percentage during the next fiscal year. Analysts have projected a rate riod. Out 10 for that pe sachs banker who got a former colleague to steal documents with Federal Reserve bank of new york has been sentenced to two years probation. Prosecutors thought he should get as long as a year in prison but the judge said it already been punished enough by having his dictation reputation trashed on the internet. Creditlets get into the suisse story. Chris, thank you very much for joining anna and myself. News, butre bad theyre focusing on the fixed income. Do you think this is the worst we see from them . Is disappointed by the reaction to the strategy which he unveiled back in october. I dont think it answered many of the questions that investors had. It hasnt been health of the overall decline in the banking center. , 15 of the cuts headcount in that unit is part of the strategy. If you look at the banner headlines, every Global Market stresses credit. This is really getting to the rubber of the issue. Is about reducing heavy risk assets isnt it . Hris absolutely, that said, there still staying with a lot of credit products. There will still be with solutions. They still be playing in those spaces. Manus everybody is in the same unfortunate business, trying to reduce risk of rated assets. The structure of this market is it remarkably changed, isnt it . particularly for the europeans, came into the crisis with a weaker capital positions and their u. S. Counterparts. Big u. S. Ment, all the banks are doing that post bonus cuts. Normally 5 of the lower and performers. But they said they were also talking about turning up the dial. They were taking more people out than the normally would. Thing, if youthe are just tuning in at the moment cutting byisse another 2000 jobs. A whole variety of comments coming back through there. What i am seeing here is little pieces of good news in terms of money, and assets coming in. This is where they will perhaps pick up the knowledge as it were. He is still going headtohead with ubs, its in the . Isnt he . Before, you said need to be in the asian market because that is where the new growth is being generated. The strategy is very clear. The problem is, it is the rest of the world. The Global Markets, there are still questions to be answered. Manus capital is obviously critical. Lagging on the payout trail. How long before this comes through him we get to decent dividend playoff pay off again . Chris probably still a couple of years to go. You can to them start being able to pump capital back into shareholders. It is an incredible contrast to what we are seeing in the United States where banks are desperate to get more credit back to shareholders. Manus thank you very much for joining us. Anna we are getting some breaking news in the brussels story. Police are trying to identify or trying to find the whereabouts and identify one person in a security photo. A man on the right of the screen wearing the hat, the others with him are thought to be, by police, those who detonated those suicide bombs. Now were getting the names of those two men. There are thought to be el bakraoui. Rtbf is reporting that citing an uninvited Unidentified Police source. Story, with the security across europe it is louder than ever following those attacks. In our guest was a great deal of experience in the security field both in aviation and more generally. Re is the cofounder of sq group. Policeseeing that the have identified the two men who detonated suicide bombs yesterday. Theyre trying to find the whereabouts of a third person. Take us behind the scenes and tell us about what will be happening. Would like to express my condolences to the family to of been affected by these terrible attacks. Whatnk that in general to bed to look at is not reactive, but proactive with security. It cannot be that for the first that we creates a layer of security. Anna i have read a lot that says by interpreting body language, and the special training, people can identify suspicious behavior in airport terminals. What about checking could before people before they get into the terminals . When youre looking at the security, the widest area is intelligence. Unfortunately, there is never 100 security. When that fails, the must be other measures in order to have other when we measure security, we looking for stability. Aspects,ook at these in order to reduce the impact. Know,day, we can as we we take measure in place. That allows us more efficiency. With the right measures, and the right amount, you have much increased security. It is some enough to have only spot ups like what you just mentioned. To spot suspicious people or suspicious activity. They are a can be just another measure that we take that can be on any kind of other kind of anna what kind of other measures can they take . Wearing can see them gloves into the terminal. This is one unusual point you can take into account. Already, manus where are we . Post 9 11 we saw a huge immediate reaction. Here we are, with an escalation. Global Playing Field in terms of what Airport Security should structurally change . Is that even possible . Unfortunately, this become more sophisticated every day. That means the security measures must improve. We always seem to be a step ahead. Anna thank you for sharing your thoughts. Countdown. It for sanguine have a fairly opening. I am positive on fair value, we are up 1 8. We are coming back from those initial losses. Release is indicating a little bit higher in the breaking news cut the past hour. Anna a lot going on geopolitically. Welcome to on the move. He was what were watching. When will the bank bashing e nd . 2000 more jobs go at Credit Suisse. Trouble in brussels stranger in unity. What will Boris Johnson have to say to mps today . Muted markets, why investors werent